Decoding Homeowner’s Insurance

HO-1, HO-3, HOA, NFIP, ALE… at times trying to understand different homeowner’s insurance policies and coverage’s can be like deciphering an ancient language or decoding a hidden message. But thankfully, Corkhill Insurance is here to help you make sense of homeowner’s insurance terminology and policies.

Basic Policies

Anything beginning with “HO” is a homeowner’s policy of some kind. Most are numbered as well, like HO-2, HO-5, etc. But there are some exceptions like HOA, which is Home Owners Association coverage which you may get from being apart of a neighborhood or condo complex.

• HO-1: the most basic policy, which only covers 11 potential damages or “named perils,” and many states require more coverage than this policy offers
• HO-2: A standard broad coverage which adds protection for 6 additional named perils like falling objects and freezing
• HO-3: A much more comprehensive policy than the previous two since it is an open perils policy, or one which covers all damages to the structure of the house except those expressly listed
• HO-5: Highest degree of coverage since it protects everything that HO-3 does, but also covers everything inside the house with an open perils policy and not just the house itself

Supplemental Coverage Plans

There are specific events which none of the “HO-“ policies cover, like floods and earthquakes, because the risk and damages are so high. Homeowners in areas where these two natural disasters are likely to happen should consider additional insurance coverage’s for their home and valuables, since both of these events are so destructive. Check with your current insurance provider to see if they offer plans for these perils.

In addition to these special coverage’s, your homeowner’s policy may or may not include provisions for ALE (additional living expenses), more commonly called displacement coverage. When your home is damaged and you are forced to move out until it is restored to a livable condition, this insurance would cover costs of essentials like food and housing.

Orlando Insurance Agency

If you have any questions about homeowner’s insurance, Corkhill Insurance Agency would love to hear them. For over 40 years, we have provided home, car, and business owners with all the insurance coverage they need to have peace of mind and protection from disasters. Our insurance experts will personally evaluate your individual needs and recommend the right amount of coverage for you. If you’d like a free quote, call us today at 407-898-8891.